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STRATEGIC PLANNING

KM Chuene
B Mabaso
R Mamogale
KM Mogale
S Nteleki ​
OUTLINE
Introduction​
Definition
Principles to a successful strategic plan
​Requirements of a good strategic plan
Strategic planning process
SWOT Analysis
Conclusion
References
​
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INTRODUCTION
In today's highly competitive business environment, budget-orientated
planning methods are insufficient for a large corporation to survive and
prosper. The firm must engage in strategic planning that clearly defines
objectives and assesses both the internal and external situation to
formulate strategy, implement the strategy, evaluate the progress and
make adjustments as necessary to stay in track.
Presentation title 4

DEFINITION
Strategic planning is defined as the process by which managers of the firm
analyse the internal and external environments for the purpose of
formulating strategies and allocating resources to develop a competitive
advantage in an industry that allows for successful achievement of
organizational goals (Cox, Daspit, McLaughen and Jones. 2012).
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PRINCIPLES TO A
SUCCESSFUL
STRATEGIC PLAN
• Successful strategic planning should result in action.
• It should be an inclusive, participatory process.
• It should be built on a jointly shared, value-based vision.
• It accepts societal accountability. (Bigelow, 2022)
• Should serve as a foundation for more detailed planning
• It should concentrate on issues with high importance.
• It should be rational and useful.
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REQUIREMENTS OF A GOOD
STRATEGIC PLAN

• A sound plan should serve as a framework for

decisions or for securing support/approval. (albu-
strategymanagement.com, 2015)
• It should provide a basis for more detailed planning
• It should be simple, logical and practical
• It should focus on matters of strategic importance
• Plan should be capable of being controlled
• Plan should assist in benchmarking and performance
monitoring
THE STRATEGIC PLANNING PROCESS

In today’s highly competitive environment, budget-orientated planning or

forecast-based planning methods are insufficient for a corporation to
survive and prosper (albu-strategymanagement.com, 2015). A business
must engage in strategic planning that clearly defines objectives and
assesses both the internal and external situation to formulate and
implement the strategy and assess the progress and make adjustments as
necessary to stay on track.

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STRATEGIC
PLANNING PROCESS
A simplified view of the strategic planning process is shown by the
following diagram:
Mission and objectives

Environmental scanning

Strategy formulation

Strategy implementation

Evaluation and control

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MISSION AND OBJECTIVES

The mission statement describes the organization’s vision, including the

unchanging values and purpose of the firm and forward looking
visionary goals that guide the pursuit of the future opportunities;

Guided by the vision and mission objectives would be a specific, short-

term action that will contribute to achieving a goal and must be
measurable
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ENVIRONMENTAL SCAN

The environmental scan includes the following components:

- Internal analysis of the organization
- Analysis of the organization (task environment)
- External macro environment (Bryson, 2018)

The internal analysis can identify the strengths and weaknesses and the
external analysis reveals opportunities and threats; these profiles are
generated by means of a SWOT analysis
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STRATEGIC FORMULATION AND

IMPLEMENTATION
Given the information from the environmental scan, the organization
should match its strengths to the opportunities that has identified while
addressing its weaknesses and external threats. (Bryson, 2018)

The selected strategy is implemented by means of the programs, budget

and procedures. Implementation involves organization’s resources and
motivation of the staff to achieve objectives
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EVALUATION AND CONTROL

The implementation of the strategy must be monitored and adjustments

should be made as needed (Bryson, 2018)
. Evaluation and control consist of the following steps:

1. Define parameters to be measured

2. Define target values for those parameters
3. Perform measurements
4. Compare measured results to be pre-defined standard
5. Make necessary changes
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SWOT ANALYSIS
A scan of the internal and external environment is an important part of the
strategic planning process. Environmental factors internal to the
organization usually can be strengths (S), weaknesses (W), and those
external can be classified as opportunities (O) or threats (T). Such an
analysis is referred to as a SWOT analysis (Bryson, 2018)
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STRENGTHS AND WEAKNESS

 Strength: combination of resources and skills that can be utilized to create a competitive advantage.
(Bigelow, 2022)
Examples include:
1. A positive consumer reputation
2. Exclusive use of valuable natural resources
3. Effective use of distribution networks
4. Strong band names

 Weaknesses: characteristics that limit your ability to perform well in situations where you need to
(Bigelow, 2022).
Examples include:
1. Culture
2. Organizational resources
3. The value system
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OPPORTUNITIES AND THREATS

 Opportunities: areas where you can improve and perform better (Bigelow,
2022)
Examples:
1. Unfulfilled customer demand
2. Lowering of restrictions
3. Emerging new technologies
4. International barriers are removed
Threats: difficulties the company is confronted with (Bigelow, 2022)
Examples include:
1. Higher trade barriers
2. New regulations
3. The emergence of products that are substitutes.
4. A change in consumer preferences away from the company's goods
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SWOT ANALYSIS
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CONCLUSION
In conclusion, having a strategic plan in place can enable you to track progress
towards goals. When each department and team understands your company's larger
strategy, their progress can directly impact its success, creating a top-down approach
to tracking key performance indicators.
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REFERENCES:
• albu-strategymanagement.com. (2015). 6 Guiding Principles to
Successful Strategy Management - Albu Strategy Management.
[online] Accessed on: 16 October 2022. Available at:
https://albu-strategymanagement.com/2015/07/6-guiding-principles-su
ccessful-strategy-management/
.
• Bigelow, S. (2022). What is strategic planning? - Definition from
WhatIs.com. [online] SearchCIO. Accessed on: 17 October 2022.
Available at:
https://www.techtarget.com/searchcio/definition/strategic-planning.
• Bryson, J.M., 2018. Strategic planning. In Defining Public
Administration (pp. 208-229). Routledge.
• Cox, M., Daspit, J., McLaughlin, E. and Jones III, R., 2012. Strategic
management: is it an academic discipline?. Journal of Business
Strategies, 29(1), pp.25-42.